If you’re age 60 or over and own a property (residence or caravan) or have an interest in a trust which owns a residence then having appropriate cover is essential.
The main thing to consider is whether your savings will meet your funeral costs and outstanding mortgages/loans if you were to die unexpectedly. If this would leave any shortfall with the size of your estate, there are policies available for this as well as those already mentioned above.
There are so many different types of life insurance policy from low-cost term assurance to lifetime with-profits endowment policies that offer tax-free cash alternatives.
Specific insurance can be bought to cover the debts on your home and contents, this would pay a lump sum if you die whilst you are still liable for these mortgages/loans or within 12 months of the final payment being made.
The cost of life cover will also depend on your age, whether there is an existing medical condition that may require further investigation or if it’s a joint policy (with someone else).
Some policies provide more than one type of cover, i.e. they include critical illness if diagnosed with cancer etc., in addition to some term assurance against death.
Many people simply fail to see the need for more than one policy but taking out more than one type of insurance not only gives peace of mind but means should you die, plans to financially protect the other person will be in place.
Insurance doesn’t have to cost a lot of money either. There are age-related discounts available. So, if you’re age 70 plus, for example, it is likely your premiums would be lower than someone age 60 with no age-related discounts.
Some policies cover the mortgage/loans on your home at an appropriate level, along with any outstanding credit cards.
This type of policy is different from life insurance as it only pays out if you die within 12 months of taking out the policy or if diagnosed with a terminal illness after signing up.
These policies are normally bought by people who have an existing medical condition that may require further investigation but would like to have the comfort of knowing that should they die, outstanding debts would be paid.
Again age is a factor as well as health, but you can still find age-related discounts and insurance to cover existing medical conditions even if you’re young and still in good health.
This type of policy has tax benefits too; it’s taxable income but any premiums paid out will reduce your tax bill.
So whether you require life cover, car insurance or both read the small print before signing on the dotted line to make sure you know exactly what you’re covered for and how much cover is provided.
If however like many people, not having enough cash left from your pension fund when planning for retirement was an issue, then using age UK wills can help to ensure that you are covered for whatever may come your way.
Not only will age the UK will look at protecting you financially, but they can also advise on long term care.
It’s easy to make a will, Age UK Wills are inexpensive and there are age-related discounts available.
Have a read of the information provided on their website and if you have any questions contact them by phone or email. Or download one of their guides which is a useful starting point for anyone thinking about writing a will. You can even have your Age UK Will printed out free of charge through age UK wills too. Have an age-friendly solicitor do it for you, just ask them to write your Age UK Will.